Ken works at a dinner club. On FEb 7th his gross pay was $800 (3 days working 1 paid vacation day and 1 paid sick day). He also reported employuer tips of $900 for the previous month (applicable taxes to be deducted out of this pay). Ken belongs to the company’s 401K pland has 5% of his gross pay $800 deducted each week (salary reduction). The Dinner Club also provides matching contributions ($40) into the plan for Gorman.
$3–4A.
(a) $800 + $900 =
(b) $800 + $900 =
Audrey and Beth are partners in the Country Gift Shop, which employs the individuals listed below. Paychecks are distributed every Friday to all employees. Based on the info given compute the amounts listed below for a weekly payroll period.
3–6A.
Name and Position | Salary | OASDI Taxable Earnings | OASDI Tax | HI Taxable Earnings | HI Tax |
| Zena Vertin, Office | $ 535 per week | ||||
| Nicole Norge, Sales | 2,980 per month | ||||
| Bob Mert, Delivery | 485 per week | ||||
| Audrey Martin, Partner | 950 per week* | ||||
| Beth James, Partner | 950 per week* | ||||
| Totals |
Employer’s OASDI Tax
Employer’s HI Tax
*The $950 that each partner receives each week is considered a drawing or withdrawal, not a salary payment.
Ralph was paid salary of $64,600 during 2014 by Odesto Company. In addition, during the year Ralph started his own business as a public accountant and reported a net bsuiness income of $60,000 on his income tax returns for 2014. Compute the following:
3–8A.
(a) The amount of FICA taxes that was withheld from OASDI __
his earnings during 2014 by Odesto Company. HI ___
(b) Henwood’s self-employment taxes (will receive a credit on his
federal income tax return for these paid taxes) on the income
derived from the public accounting business for 2014.
[$XX,XXX taxable ($113,700 – $64,600) × 0.124] OASDI __ ($XX,XXX taxable × 0.029) HI ____
The monthly and hourly wage schedule for the employees of Quirk Inc. follows. No employees are due overtime pay. Compute the following for the last monthly pay of the year :
a) The total wages of each part time employee for December 2014;
b) The OASDI and HI taxable wages for each employee;
c) The FICA taxes withheld from each employee’s wages for December;
d) Totals of columns;
e) The employer’s FICA taxes for the month.
3–10A.
Employees | Total Monthly Payroll | OASDI Taxable Wages | HI Taxable Wages | OASDI Tax | HI Tax | ||
| Full-Time Office: | |||||||
| Adaiar, Gene………………………………………………………………. | $ 1,400.00 | ||||||
| Crup, Jason……………………………………………………………….. | 1,300.00 | ||||||
| Essex, Joan……………………………………………………………….. | 1,975.00 | ||||||
| Garza, Irma………………………………………………………………… | 1,985.00 | ||||||
| Leason, Mel……………………………………………………………….. | 1,900.00 | ||||||
| Pruit, Marne……………………………………………………………….. | 7,000.00 | ||||||
| Rubble, Deanne………………………………………………………….. | 2,400.00 | ||||||
| Simpson, Dick……………………………………………………………. | 3,985.00 | ||||||
| Truap, Ann…………………………………………………………………. | 5,000.00 | ||||||
| Wilson, Trudy……………………………………………………………… | 1,500.00 | ||||||
Part-Time Office: | Hours Worked | Hourly Rate | Total Monthly | ||||
| Kyle, Judy………………………. | 170 | $ 8.25 | |||||
| Laird, Sharon…………………… | 170 | 8.35 | |||||
| Maxwell, Sara…………………… | 140 | 10.10 | |||||
| Nelson, Donna…………………. | 145 | 8.20 | |||||
| Scott, Kim………………………. | 162 | 9.65 | |||||
| Totals…………………….. |
Employer’s FICA taxes OASDI HI
Volcan Co. is a monthly depositor whose tax liability for March 2014 is $2505. (Use the IRS 941 Form) attached.
3–16A.
1. Due Date to be filed:
2. (a) Penalty for failure to make timely deposit (17 days late):
$X,XXX × 10%…………………………………………………………………………
(b) Penalty for failure to fully pay tax: $X,XXX × 1/2%………………….
(c) Interest on taxes due and unpaid:……………………………………
(d) Total penalty imposed……………………………………………………………..